After a surprising announcement from Walt Disney Internet Group yesterday that they would cease operations of their US-based mobile virtual network (MVNO) phone service to "explore a new business model for its content and services," questions of its direction and that of the wireless industry have surfaced.

 

The company noted that the new direction of their business model may include offering its Family Center product through a partnership with a major U.S. carrier. In fact, partnerships seem to be key in the industry today as opportunities in the wireless market take shape.

 

While the announcement came as a surprise, it has forced some, like wireless and telecom analyst Jeff Kagan to question if the announcement means Disney is 'out of the game' for good.

 

As Kagan points out, the announcement can be viewed much like ESPN's move last year to exit from the MVNO wireless space, then partnering with a carrier.

 

Disney was after all, "on to something" by offering a host of add-ons to a huge customer base. For this reason, the move can be seen as an indication that the wireless business was "more complex than Disney thought" and as Kagan anticipates, Disney will soon announce a new partnership.

 

"The wireless industry is shaping itself as it discovers what it's capable of and what sorts of things it needs the help of an expert for. I believe this segment will ultimately be successful, but we have to first go through trial and error to find the best way to structure it," Kagan commented.